That zoning decision,known as plan change 19, was released last month, in the same week as the High Court hearing of appeals against consents granted for the projects by a different division of the Environment Court.
The long-awaited decision has rejected a zone which was pushed for by Shotover Park Ltd allowing a supermarket and other activities including industrial, trade and home improvement.
The decision, by Judge Jane Borthwick and commissioners Ross Dunlop and David Bunting, states the activity area E3 ''would most likely develop as a fourth commercial centre'' and would not be consistent with the district plan.
The court concluded it must decide ''whether to approve'' the activity area E2 zone - for mixed business including industrial - or Shotover Park Ltd's proposed E3, ''but it cannot approve both''.
Foodstuffs and Crossroads Properties were granted consent to build and operate the stores on land owned by Shotover Park Ltd in separate decisions released last year.
However, Shotover Park Ltd said the interim decision did not rule out the two stores because ''this current decision by the Environment Court is particularly clear that `any consent granted' to the owners of Pak'n Save and Mitre 10 Mega facilities 'may be exercised' ''.
''The decision, however, requires a significant amount of further work to be done by QLDC [Queenstown Lakes District Council] to provide a coherent planning framework and identifies the potential for even more mediation and hearings,'' a statement from Shotover Park said.
Shotover Park is also ''considering opportunities that could speed up the resolution of PC19''.
The E2 zone has been placed 50m either side of the confirmed eastern access road which runs through the centre of the land in question and would be too small for the large stores.
QLDC policy and planning general manager Phil Pannett said the interim decision was ''pretty close'' to the structure plan released in 2009.
A residential zone is set among the E2 area bordering the eastern access road, a retail zone and a yard-based industrial zone.
Mr Pannett said the residential area could have between 600 and 1000 housing units.
Judge Borthwick and the commissioners recognised the area was one of the last greenfields sites left to be zoned in Queenstown and ''one of the few areas remaining that has the capacity to contribute significantly toward the need for affordable housing at densities not achieved elsewhere in the district''.
A further hearing could be required and counsel for Foodstuffs indicated in the High Court hearing the company was likely to appeal the plan change 19 interim decision.
